Sri Lankan stocks recover on banks, retail buying

COLOMBO, May 29 Sri Lankan shares recovered from
the previous session's near one-week low on Wednesday helped by
banking shares and retail investor buying, while the rupee ended
steady in dull trade.
The main stock index rose 0.33 percent, or 21.11
points, to close at 6,455.81, edging up from its lowest since
May 17, touched on Tuesday.
The index had hit a 19-month high last Thursday.
"At the bottom end, we saw some retail buying came in and
the market is consolidating at these levels with blue-chips
holding on," said a stockbroker who declined to be identified.
The banking sector index rose 0.41 percent led by
biggest listed lender Commercial Bank of Ceylon PLC
which rose 1.81 percent to 123.60 rupees a share.
Foreign investors were net buyers of shares worth of 102.5
million rupees ($810,900), extending net foreign inflows this
year to 13.38 billion rupees.
Turnover was 906.1 million rupees, less than this year's
daily average of 1.04 billion rupees.
The market's 14-day Relative Strength Index (RSI) was still
in over-bought territory, at 78.44 on Wednesday and has been
above the upper neutral level of 70 since April 16, Thomson
Reuters data showed.
The rupee ended flat at 126.48/55, per dollar in
light trade as importer dollar demand offset exporter sales of
the greenback, dealers said.
($1 = 126.4000 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil
Nair)